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Financial Statements
A financial statement is a record of the financial activities of a person or business entity where all related financial information are presented in an orderly manner and can be easily understood.
5,583 Questions
What are The notion that different measurement bases create a problem of additivity?
Different measurement bases, such as LCM or HC, create the problem of additivity as it is akin to adding height to weight. Also, when using HC, the figure is not particularly relevant due to the issue of changing purchasing power of money.
Without specific statements or context regarding the financial institutions in question, it's challenging to pinpoint which items were missing and the reasons for their exclusion. Typically, missing items may include certain assets, liabilities, or income sources not reported due to regulatory compliance, confidentiality, or strategic decisions. Additionally, variations in accounting practices or the scope of reporting may lead to discrepancies in what is included. Each institution may have unique circumstances that dictate what is reported or omitted.
If trial balance does not tally what does it means?
If the Trial Balance, doesn't "balance" or "tally" then there is a posting error in your records or there is an entry missing.
In the Trial Balance both sides (debit and credit) must balance, or be equal, if they do not, then there is some error, you will need to double check all entries for the time period from when the last Trial Balance tallied up until the new one didn't to find any errors or missing entries that may have occurred.
Please Note: My answers are based on the GAAP (Generally Accepted Accounting Principles U.S.A.) and Double Entry Accounting Practices. Other rules and regulations may apply or differ depending on the Country of Origin.
Here are your first two ways to find the error: 1) divide the difference between the debits and credits by 2. If you have an account with that exact balance, it may be posted on the wrong side of the trial balance. For example, if a $50 debit is shown on the credit side of the trial balance, your balance will be off by $100; and, (2) If the difference between the debits and credits is evenly divisible by 9, you may have a transposition, for example, you have a balance of 128 and it should be 182.
What is the journal entry for drawings for office use and personal use in accounting?
drawings means cash,goods or services drawn by the owner,investor for self consumption. where interest on drawings means the owner will also pay some interest to the business journal entries are as follows:
1.(if drawings made for personal use by owner) Drawing a/c-Dr to cash a/c-cr 2.(if goods taken) Drawing a/c-Dr to purchases a/c -Cr 3.(if drawings made from bank for office use) cash a/c-Dr to bank a/c-cr
4. if it's in cash then
drawings a/c Dr. cash a/c Cr. 5.if it's in material then drawings a/c Dr. purchase a/c Cr.
6.interest on drawings
drawings a/c....dr
to interest on drawings a/c.....(cr)
a) shown on credit side of profit and loss a/c.
b)deduct from capital and show on the liabilities side.
Should school subjects like science and mathematics and biology be capitalised?
Yes, when specifically referring to the names of the subjects, such as "Science," "Mathematics," and "Biology," they should be capitalized.
What is the difference between 1M and 1MM?
M or Molarity is what is used to describe the concentration af acids. 1 M means that there is one mole of substance per every liter of sulution so if the molarity of HCl (hydrochloric acid) is 1 then there is 1 mole of HCl per every liter of the hydrochloric acid.
Is the industry one in which companies are very competitive?Are competitive industries emerging?Is obsolescence emerging within the industry?Are there regulatory considerations and requirements?
What factors must be considered in the preparation of prospective financial statements?
When preparing prospective financial statements, factors to consider include current economic conditions, industry trends, market competition, regulatory environment, internal capabilities, management expertise, and potential risks. It is also important to review historical financial data, make realistic assumptions about future performance, and ensure that the statements comply with relevant accounting standards and guidelines. Additionally, sensitivity analysis and scenario planning can help assess the impact of different variables on the financial projections.
What are the qualifications to join a university in Kenya?
To join a university in Kenya, you typically need to have completed secondary education and passed the Kenya Certificate of Secondary Education (KCSE) examination. You will also need to meet the specific entry requirements set by the university and potentially pass an entrance exam or interview depending on the program. International students may need to provide additional documentation such as proof of English proficiency and academic transcripts.
Cost-volume-profit CVP analysis is based entirely on unit costs?
The CVP analysis determines the changes in costs and volume that affects a company's operating income and net income. However it assumes that the sales price, variable costs and the total fixed costs per unit remain constant
In the horseshoeing trade (farrier) it means double aught. This is a standard size shoe for a lot of horses. The shoe can be made of steel, aluminum, or even titanium. The farrier shapes the shoe to fit the horses foot and it is either nailed or glued. I should know, I am a farrier.
Why is a Science Journal used to record data?
A science journal is used to record data because it provides a systematic way to organize observations, experimental results, and findings. It helps scientists document their methods, track progress, and communicate their work to others in a clear and organized manner. The journal also serves as a reference for future research and ensures the reproducibility of experiments.
What general rule of revenue recognition does percentage of completion violate?
For a short answer, it doesn't violate any general rules. Under International Financial Reporting Standards (IAS 18) revenue from services must always be recognised in this way. Revenue from construction contracts is also recognised in this manner in certain circumstances.
The rules in the USA and other jurisdictions may be different.
General rules get taught differently by different teachers and no doubt vary geographically and over time. An introductory lesson may have a general rule that income has to be recognised only when the job is done, i.e. completed, but corporate reporting needs more sophisticated treatments. The method of recognizing revenue under the percentage complete method fulfills two of the basic principles of GAAP. Revenue Recognition: Which requires that revenue be booked as revenue when the revenue has been earned regardless of the timing of invoicing or cash receipts. Matching: Which requires that Revenues and their related Costs be recognized in the same accounting period. Regardless of timing of invoicing or of cash receipts. The percent complete methods helps to determine the relationship between revenues and costs that is required by the matching principle.
If the volume goes up what happens to the fixed cost and profit?
If the volume goes up, fixed costs remain constant while profit usually increases. This is due to the fixed costs being spread out over a larger number of units, leading to an increase in profit as long as revenue exceeds variable costs.
Why did your ancestors create measurement standards?
Our ancestors created in ancient times actually had their own measurement standards comparing to everyone else. A certain community, like an Indian tribe would have their own measurements for shells, fishing rods, bows, and other things. They made their own measurements so it will be easier for them to interact to each other within their tribe. Eventually conflicts arise when they started trading which is called reciprocity. The measurements they created for their own items will be drastically different than other tribes. Thus, this will greatly affect their interaction with each other leading to a war perhaps. This will be fixed of course as time passes because the global economy came to an agreement at most for standardizing measurements which is called today as the International System Units.
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Profit is a positive value for revenue minus costs. (A negative difference is a loss.)
The easiest and most basic way is to take the total revenue of the business and minus the total cost of the business. Hence, Profit = TR - TC. From my understanding, this simple equation have different interpretations based on different subjects. The total revenue or TR, is calculated from the price of a good multiplied with the quantity of good sold. While the total cost, or TC, is the sum of fixed cost and variable cost incurred. Hence, now the equation becomes . . . Profit = P.Q - ( Fixed Cost + Variable Cost ). This equation can change further, depending on what discipline you are looking from. If you are looking from the Economics perspectives, the total cost should be included with the opportunity cost. While from the Accounting perspectives, the opportunity cost is ignored.
What statements about the subcintinent are accurate?
Some accurate statements about the Indian subcontinent are that it is home to diverse cultures, languages, and religions, including Hinduism, Islam, Sikhism, and Buddhism. The region also has a rich history dating back thousands of years, with significant contributions to art, science, and philosophy. Additionally, the subcontinent has a varied landscape, from the Himalayas in the north to the Indian Ocean in the south.
Are the names of food groups capitalised?
No, they are common nouns so you only capitalise at the start of a sentence
Yes, the word "opera" is typically capitalized when referring to the specific musical art form. However, if used in a general sense to refer to any type of performance or entertainment, it is not capitalized.
Do you capitalise grandfather?
Yes, "grandfather" is usually capitalized when used as a title preceding a name or as a proper noun, such as "Grandfather Smith."
Do you capitalise senior citizens?
No, senior citizens does not require capitalization, unless senior is the first word in a sentence.
